This morning, we published our twice daily bitcoin price watch piece. In the article we noted that we would bring our intraday breakout strategy to the fore, and look to enter in the direction of a break (and close) above or below our predefined range parameters. We also noted the possibility for an intrarange trade based on the idea of a correction from resistance. Action has now matured throughout the European session, and later on this evening we will be heading into a fresh day’s trading in China and wider Asia. With this in mind, and considering that the large moves all seem to have come during the Asian session over the last few weeks, what are we watching tonight, and where are our parameters set? Take a quick look at the chart to get an idea of our key levels.
As you can see, today’s action broke out to the upside shortly after we published our initial analysis. However, we failed to reach our upside target by about half a dollar (a little disappointing, but hey) and reversed to trade back within our predefined range. In light of this, we are going to maintain this morning’s key levels as the ones to watch this evening. In term support at 314.70, and in term resistance at 335.14.
Since we got a break to the upside, let’s look at that first. If we can once again close above resistance, it will put us long towards (once again) 345 flat. A stop somewhere around 332 will take us out if we reverse to trade back within range, just as happened a little earlier on.
Looking the other way, if we break below in term support, it will put us in a short trade towards a longer term downside target of 294 flat. Keep in mind that 300 may provide some psychological resistance here. A more conservative target would be just above this level – circa 301.
Charts courtesy of Trading View